Saturday, July 11, 2015

Majority of us are working adults, we work for companies as accountants, engineers and many more positions.

Most of the time when I go out to the field and approach people about getting a Personal Protection Programme, I always hear people answered, "My company covers me well" or "I got company insurance already" and many other variants with similar meaning.

When I probe further, many of these working adults have NO IDEA what coverage the company has prepared for them. Most of them thought that they are 100% covered but sadly, that is not the case for 99% of the working people.

When they finally found out that their company insurance are SO LOW, to the extend of only RM10,000 Annual Limit, they were panic and asked my advice on helping them to set up a Personal Protection Programme.

Just to clear the cloud, let me show you possible 3 scenarios about Depending on Company Group Insurance.

Ideally, the above scenario (Scenario A) is what everyone wants.

When are 100% healthy for entire life, or, if there is any claims during our employment, company or company group insurance will bear ALL the Medical Fees.

When we retired, we are also 100% healthy till we die, or, we are already multi millionaire that we can bear ALL the Medical Fees if we fall sick, before we die.

Mind you, the above scenario is the MOST IDEAL one, don’t you agree?

Scenario B depicts a very realistic but yet not-so-serious scenario whereby there is a claim somewhere in between and one had to either:

Become a multi millionaire after retire so one can bear ALL the medical fees in the future after retire

Chose to work for another 15 years (Company Group insurance covers maximum up to age 70) because wanted to depend on Company Group Insurance.

If one has a Personal Medical Insurance(covers till age 91) + Income Replacement(covers till age 100) when one started working, will the above scenario changed, slightly?

Now what if you change job due to better offer?

You can’t be working in the same company until you retire, unless you know you can retire as the CEO of the company, right?

When you change jobs, your existing coverage from your previous company group insurance will also expire, leaving you with no coverage at all. The coverage from your new job will most probably commence after your probation (if not, immediately) and ALL Pre-Existing Illnesses will NOT be covered for at least 1st 12 months.

What are you going to do if the same illness happens again?

The answer is very simple, you bear ALL the Medical Fee for that treatment!

After 12 months, are you safe? Maybe yes if the coverage is the same or more than your previous entitlement in your old company.